Applied Materials Partners with SEMATECH to Develop Low k Etch Processes; Applied Materials' Etch Systems Selected to Develop Copper Interconnect Technologies.

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 13, 1998--Applied Materials, Inc., the world's leading supplier of semiconductor manufacturing equipment, has begun the second phase of a program with SEMATECH to develop processes that can be used to etch emerging low dielectric constant (low k) materials. Offering greater electrical insulation than today's commonly used silicon-based oxides, low k materials enable chipmakers to pack circuitry closer together for improved speed and computing power.

"We will use Applied Materials' etch systems to enhance our knowledge of low k materials and identify specific process issues related to etching these films," said Jon Dahm, director of SEMATECH's Interconnect Division. "This understanding should also help us integrate low k materials into copper-based interconnects. Another facet of the program is to develop processes for advanced self-aligned contacts and high aspect ratio etches using conventional films. Our goal is to help our members rapidly commercialize these new technologies by shortening the development time required for their next generation designs."

SEMATECH's program to develop low k compatible processes is part of a broader initiative to explore the implementation of dual damascene structures that integrate copper metal lines with low k dielectrics. The dual damascene approach, which allows plug and interconnect metal layers to be deposited simultaneously, is expected to enable chipmakers to reduce the number of processing steps and thereby lower manufacturing costs.

"Applied Materials' etch products are uniquely capable of pioneering new solutions to the broad variety of requirements anticipated for low k etching," said David Bergeron, president of Applied Materials' Etch Products Business Group. "Our customers face multiple challenges as they implement these new materials and applications into their devices. Working with our customers on these issues at SEMATECH provides a real-world environment for rapid process development and will enhance Applied Materials' capabilities in meeting the demands of next-generation device manufacturing."

Based in Austin, SEMATECH is a non-profit research and development consortium of the following U.S. semiconductor manufacturers: AMD, Digital Equipment Corporation, Hewlett-Packard Company, Intel Corporation, IBM Corporation, Lucent Technologies, Motorola, National Semiconductor Corporation, Rockwell International Corporation and Texas Instruments Incorporated. Additional information about SEMATECH is available on the Internet at www.sematech.org.

Applied Materials, Inc. is a Fortune 500 global growth company and the world's largest supplier of wafer fabrication systems and services to the global semiconductor industry. Applied Materials is traded on the Nasdaq National Market System under the symbol "AMAT." Applied Materials' web site is http://www.AppliedMaterials.com.

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